Hi all, Are there any options to make a reasonable return on a bank account? I'm currently getting 0.9% p.a. I know you can get higher rates on introductory rates but that's a lot of effort to go to for a few dollars. Thanks!
Agree - owning the bank beats saving with them. A offset is possibly the second best benefit. It can pay 3.4% approx and thats tax free.
^This - however, so glad I kept 1/3 of my cash in the bank since I retired, had to spend some during covid but didn't have to sell any shares when dividends dived ...
NO it doesnt, Over the last 5 years the ASX 200 which has been weighed down by banks has gained 24%, WBC has lost 48%, NAB lost 25%, ANZ 19% The Best performing big 4 bank CBA lost 4%. If you has equal weighting since 2016 you would have lost 22.6% and been 47% below the ASX. An index without banks such as NDQ is up 200% Banks are only good for borrowing from, if you want to grow or even preserve wealth. If you invested in NDQ in 2016 you could buy a house now that has gone up 50% very cheaply compared to funds, and have 150% of your capital left after buying a house, if you invested in banks your house has become 100% dearer compared to funds.. Couldnt buy one house from bank investment proceeds or get leverage. You could buy 2 for cash with NDQ and get leverage
Invest with Private Lenders. 7-8% for 1st Mortgage 12-15% for 2nd Mortgage and Caveat. I'd keep it safe with 1st Mortgage. Second is dicey IMO, although a good lender wouldn't put that at risk per-se without solid collateral.
